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China offers incentives

China offers incentives to stimulate hybrid cars

(Xinhua)
Updated: 2009-01-31
14:42

China is to offer policy incentives to speed up spread of energy-savingcars in 13 pilot cities.

The ministries of finance and science and technology jointly issueda circular on providing subsidies to users of hybrid, electric andfuel cell cars in Beijing, Shanghai and another 11 major cities, the Ministry of Finance said on itswebsite.

Public transport, taxi companies, post services and public officeswere encouraged to use more energy-saving vehicles, the circularsaid.

The government promised to give companies and institutions, whichpurchase and use such vehicles, lump sum subsidies to offset theirextra cost on fuelling efficient cars than ordinary ones.

Meanwhile, the central government urged local governments tosubsidize the development and maintenance of energy-friendlycars.

This is considered the boldest measure the central government hasever taken to stimulate promotion of hybrid cars although thesubsidies have yet to extend to private car users.

Due to much higher price tags on them, hybrid cars encountered coldshoulders in thriving domestic car market over the past fewyears.

While introducing mature hybrid products into the publictransportation sector before the Beijing Olympic Games in2008, China also adjusted its research and development plans as well as carindustry policies in terms of spreading fuel-efficient engines andvehicles.

Long trained as a technologist in a German auto company, Ministerof Science and Technology Wan Gang is an avid advocate for hybridcars, and his ministry plays a key role in technologicalupgrading.

China offers incentives to stimulate hybrid cars

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